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SEC Filings

10-K
GRAHAM HOLDINGS CO filed this Form 10-K on 02/23/2018
Entire Document
 


Accounts payable and accrued liabilities consist of the following:
 
As of December 31
(in thousands)
2017
 
2016
Accounts payable and accrued liabilities
$
385,927

 
$
352,356

Accrued compensation and related benefits
140,396

 
148,370

 
$
526,323

 
$
500,726

Cash overdrafts of $6.0 million and $15.5 million are included in accounts payable and accrued liabilities at December 31, 2017 and 2016, respectively.
7.
INVENTORIES AND CONTRACTS IN PROGRESS
Inventories and contracts in progress consist of the following:
 
As of December 31
(in thousands)
2017
 
2016
Raw materials
$
30,429

 
$
20,646

Work-in-process
10,258

 
5,368

Finished goods
18,851

 
8,490

Contracts in progress
1,074

 
314

 
$
60,612

 
$
34,818

8.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
 
As of December 31
(in thousands)
2017
 
2016
Land
$
16,190

 
$
10,410

Buildings
107,932

 
88,256

Machinery, equipment and fixtures
387,914

 
433,652

Leasehold improvements
215,445

 
209,612

Construction in progress
16,649

 
36,728

 
744,130

 
778,658

Less accumulated depreciation
(484,772
)
 
(544,994
)
 
$
259,358

 
$
233,664

Depreciation expense was $62.5 million, $64.6 million and $77.9 million in 2017, 2016 and 2015, respectively.
The Company capitalized $0.3 million and $0.4 million of interest related to the construction of a building in 2017 and 2016, respectively. No interest expense was capitalized in 2015.
In the second quarter of 2017, as a result of a challenging operating environment, Forney recorded a $0.6 million impairment charge. In the third quarter of 2017, GHG recorded an impairment charge of $0.4 million. The Company estimated the fair value of the property, plant and equipment using a market approach. Forney and GHG are included in other businesses.
In the second quarter of 2015, as a result of the sale of Kaplan’s KHE Campuses business, Kaplan recorded a $6.9 million impairment charge. The Company estimated the fair value of the property, plant and equipment using a market approach.
9.
GOODWILL AND OTHER INTANGIBLE ASSETS
In the second quarter of 2017, as a result of a challenging operating environment, the Forney reporting unit recorded a goodwill and intangible asset impairment charge of $8.6 million. The Company performed an interim review of the goodwill and other long-lived assets of the reporting unit by utilizing a discounted cash flow model to estimate the fair value. The carrying value of the reporting unit exceeded the estimated fair value, resulting in a goodwill impairment charge for the amount by which the carrying value exceeded the reporting unit’s estimated fair value. Forney is included in other businesses.
In the fourth quarter of 2016, as a result of the challenging industry operating environment and operating losses, one of the businesses in the other businesses segment recorded a goodwill impairment charge of $1.6 million.
In the third quarter of 2015, as a result of continued declines in student enrollments at KHE and the challenging industry operating environment, the Company performed an interim impairment review of its goodwill and long-lived

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